Not even our dear learned friend Daniel Bernoulli, with his principle and complex equations, could accurately measure the flow rate of Oil & Gas news – it’s simply too fast moving and most of it, much of the time, entirely contradictory in nature.
Whether we get good vibrations or bad voodoo, optimistic forecasts or harbingers of doom, will depend on many different variables.
Politics comes into play often, of course, while there are also legitimate business reasons the major players in the industry are apt to offer different commentaries to suit certain economic climates.
What is irrefutable in the most recent headlines is that 41 new licences for Oil & Gas operations in the North Sea have been awarded. As David Brent (no relation) would say: “Fact!”
In one of the largest awards, the 28th since the first licensing round way back in 1964, the Oil & Gas Authority (OGA) confirmed the licences after a total of 134 had been announced in November last year.
The new round comes after the Government announced a major package of support in March to encourage £4 billion of additional investment in the North Sea to try to prolong the shelf life of the industry.
UK Energy Minister Andrea Leadsom commented: “We are backing our Oil & Gas industry, which supports hundreds of thousands of jobs across the UK.”
Meanwhile, according to Oil & Gas UK’s latest Business Sentiment Index (BSI), companies in the UK Oil & Gas industry are apparently becoming a smidgen more optimistic about the sector.
The BSI, which measures economic indicators such as business confidence, activity levels, revenue, investment and employment showed for the second quarter of 2015 respondents returning a score of -27 on a -50/+50: that’s a humble but encouraging four point increase on the figure for the first quarter.
Ach, it’s all good news then, so can we all just get back to work now? Well, let’s not be too hasty to slip on the rose-tinted safety goggles.
Royal Dutch Shell has reacted to a depressed oil price environment by announcing further job cuts and capital expenditure reductions. Alongside second quarter results that showed a slide in earnings, it has announced 6500 further job losses and more cuts to spending.
But yes, even against this backdrop, investment and licensing in the North Sea certainly give fresh hope for the long-term survival of the industry – even a revival.
And, let’s not forget there are many jobs that depend on this industry succeeding, such as an entire army of Engineers in all manner of specialisms.
In fact, according to the 2015 salary survey carried out by industry commentator The Engineer, the Oil & Gas industry is the most lucrative sector for Junior Engineers, with the average annual pay sitting at £35,566.
That’s something for Engineers to focus on – it will certainly pay to keep an eagle eye for opportunities and openings on s1jobs.
As one industry insider told us from his HQ in Aberdeen: “The worst thing anyone can do right now is turn their back on this industry and set up stall elsewhere.
“Opportunities will always be there but you have to be waiting and ready to grab them.”